Nigeria's financial regulator plans to license all crypto exchanges in the country
Nigeria's financial regulator plans to license all crypto exchanges in the country
Nigeria’s Securities and Exchange Commission (SEC) has announced plans to introduce licenses for cryptocurrency exchanges, marking a significant shift in the regulatory landscape for digital assets in one of Africa’s largest economies.
Nigeria is poised to issue licenses to cryptocurrency exchanges in what marks a major regulatory move, as reported by Cointelegraph. This move signals Nigeria's Securities and Exchange Commission (SEC) intent to bring the burgeoning digital asset market under formal regulation.
SEC Chief Emomotimi Agama, in a recent interview with Bloomberg, noted: "As a crypto and fintech enthusiast, I can confidently say that licensing will happen sooner than you think." Also, Agama stressed the importance of supporting Nigeria's growing fintech sector.
The SEC has provided a 30-day window for VASPs to complete this process, which can be accomplished through the SEC's electronic portal.
The original Rules for Digital Asset Issuance, Offering Platforms, Exchange, and Custody were introduced in May 2022, and the recent amendments follow the appointment of Emomotimi Agama as the new Director-General of the SEC.
In addition to the new rules, the SEC has also proposed changes to the financial obligations of crypto exchanges operating in the country. In March 2023, the SEC suggested an increase in the registration fee for crypto exchanges from 30 million naira (approximately $18,620) to 150 million naira (around $93,000).
Nigeria’s proactive stance on crypto regulation is set against the backdrop of its rapid emergence as a key player in the global cryptocurrency economy. By 2023, Nigeria had become one of the fastest-growing crypto economies, with the country ranking second globally in crypto adoption. Furthermore, in August 2022, Nigeria was recognized as the most "crypto-obsessed" country in the world, according to Google searches.
Through its licensing and compliance programs, the SEC seeks to strike a balance between fostering innovation in the digital asset space and ensuring investor protection.
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